MicroCap Small Business Investing Act of 2023

HR 3717, the MicroCap Small Business Investing Act of 2023, creates a new license category for small business investment companies (SBICs) to increase capital access for underserved businesses. It allows up to 10 annual licenses for firms that don’t meet standard management experience requirements but demonstrate industry expertise, business success, or community focus. These "MicroCap" SBICs must invest at least 25% of capital in low-income communities, opportunity zones, R&D businesses, manufacturers, underserved-owned businesses, or rural areas. The bill also establishes a streamlined 90-day licensing process with clear feedback and requires the Small Business Administration to publish annual reports on license numbers, investment industries, and geographic focus.